After a long-anticipated wait Amazon Australia has been granted its first liquor licence.
Amazon began operating out of its second Australian fulfilment centre in August 2018, but the 43,000-square-metre facility located in the south-west Sydney suburb of Moorebank has only today been granted its first Australian liquor licence.
Beverages (alcoholic & non-alcoholic) as a category has dominated Amazon’s share of grocery sales worldwide and Amazon’s arrival in the alcohol category in Australia will be an attractive offering for customer reach and product innovation.
The approval of Amazon’s first liquor licence means alcohol suppliers will be able to scale their business and reach more customers with the help of the Fulfilment by Amazon (FBA) service that provides access to Amazon’s logistics capabilities, including storage, packing, shipping, customer service and returns.
Amazon Australia operations director Robert Bruce said: “This investment will benefit both customers and the local economy by generating new jobs and providing small and medium-sized Australian businesses who sell on Amazon.com.au and use our Fulfilment by Amazon program, with an opportunity to more easily access millions of customers across the country.”
At the Drinks Association’s Network Breakfast last year guest speaker Bain & Co’s Yngve Andresen predicted Australian drinks companies should “plan for UK levels” of growth on Amazon.
Alcohol sales on Amazon skyrocketed by 96% in the UK in 2017, with 34% of beer drinkers regularly purchasing online.
Amazon quietly launches own wine & spirits lines
The news comes after Amazon released its first spirit brand, Tovess Single Batch Crafted Dry Gin, in the UK last month.
Tovess’ traditional London Dry gin currently sells on the the company’s UK website for £24.99 for a 70cl bottle and is made by a distillery on the outskirts of Birmingham, UK.
The company also launched an own brand range of “affordable” wines, called Compass Road, in Germany last month.
There are six wines in the range, a Pinot Grigio, a Merlot, Chardonnay, Grenache Rosé, Dornfelder and Riesling, which are available to Amazon Prime members and retail for 19.99 euros.